The Retirement Clinic-5-16-20 – Your Investment Philosophy

Jeff Kowal and John White discuss the current state of the economy, special provisions in the CARES Act for taking money out of your retirement account, and the importance of having an investment philosophy. Please be aware that the early distribution penalty tax exception, substantially equal periodic payments, available via Section72(t) of the Internal Revenue Code, is subject to very specific guidelines, and thus, various factors should be carefully considered. Investors should understand the account value (net equity and/or principal balance) could potentially be exhausted if the distributions exceed the earnings and growth of the investment(s) in the account. Also, the ability to sustain substantially equal payments can be compromised if the account is exposed to higher volatility through higher risk or growth-oriented products. Always consult the advice of an independent tax professional prior to initiating72(t) substantially equal periodic payments.